Nannies working in a family home are almost always employees — not self-employed. The family becomes the employer and must operate PAYE, pay at least the National Minimum Wage, and provide a written employment contract within 2 months. Ofsted-registered childminders are self-employed and issue their own contracts.

• Nannies: almost always employees — family must register as employer with HMRC and run PAYE
• Childminders: self-employed and Ofsted-registered — issue their own contracts
• Au pairs: complex status — not technically employees but NMW may apply
• Nanny share: two families sharing a nanny — employment law issues arise
• Pension: auto-enrolment applies if nanny earns over threshold

Legal reference: Employment Rights Act 1996; National Minimum Wage Act 1998; Childcare Act 2006 (Ofsted); Equality Act 2010